Why is following legal rules important in business?
Answer and explanation
Correct answer: To run the enterprise safely and legally
Legal compliance means meeting applicable requirements such as registrations, licences, taxes, safety standards, and consumer-protection rules. It allows the enterprise to operate lawfully, protects stakeholders, and reduces the risk of penalties, closure, disputes, or loss of reputation. Breaking rules or hiding obligations may create short-term claims of benefit but is not responsible business. Thus, A is correct.
Frequently asked questions
What is the correct answer to this question?
To run the enterprise safely and legally
Why is this the correct answer?
Legal compliance means meeting applicable requirements such as registrations, licences, taxes, safety standards, and consumer-protection rules. It allows the enterprise to operate lawfully, protects stakeholders, and reduces the risk of penalties, closure, disputes, or loss of reputation. Breaking rules or hiding obligations may create short-term claims of benefit but is not responsible business. Thus, A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Social Responsibilities of Business and Business Ethics. Topic: Business Ethics.
